Seattle audit finds county homelessness agency ‘cannot account’ for $13M

SEATTLE - The City of Seattle and King County are going after the embattled King County Regional Homelessness Authority, after an investigation found the agency was unable to account for $13 million in public funds.

According to the Office of Seattle Mayor Katie Wilson, the city and county launched a forensic investigation into KCRHA in August 2025, following a spate of controversies — operational issues, financial woes, leadership turnover, payment delays, administrative overspending and unverified accounting of cash advances. The investigation covered the six years the agency has been in operation.

The result of that investigation?—KCRHA is unable to account for $13 million in public funds, according to the Mayor's Office.

Mayor Wilson says the city is now pursuing "immediate corrective action."

What they're saying:

"Addressing homelessness is my highest priority, and I have serious concerns about KCRHA’s management of city funds," said Mayor Wilson. "We need to take swift action to protect public dollars. All options are on the table."

City Councilmember Maritza Rivera is calling for the dismantling of KCRHA, saying it has "failed in its mission":

"I am shocked and outraged after seeing the results of the forensic evaluation of the King County Regional Homelessness Authority, which I just received today. It shows an egregious mismanagement of funds and an unacceptable lack of financial accountability.

"KCRHA has a history of dysfunction and inefficiency, and it is time to acknowledge that it has failed in its mission.

"I am calling for Mayor Wilson to provide a plan for the dismantling of KCRHA as soon as possible, and a commitment to work with City Council to determine how Seattle will move forward in meeting its shelter and housing needs.

"On the heels of today’s announcement, I am even more steadfast in my call for an audit of Seattle’s human services contracts. We need to get our house in order."

The other side:

KCRHA CEO Kelly Kinnison acknowledged the investigation's findings in a memo sent to the agency's Governing Board.

Kinnison requested the forensic investigation shortly after joining the agency, and notes that much of the report's most damning findings were "concentrated in KCRHA's early formation period," exacerbated by the COVID-19 pandemic, startup challenges, complicated funding and other issues.

Kinnison says many of those problems have been addressed in recent years, though she admits they still have improvements that can be made.

"Importantly, the audit did not identify evidence of fraud or misuse of funds. The findings instead focus on the need and cost of maturing our financial systems, reporting practices, and internal controls," said Kinnison. "We take these findings seriously. Many reflect conditions that I was hired to address and have been working on — and the audit provides important clarity that will help guide our next phase of strengthening KCRHA’s financial systems and organizational performance."

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